Deal of the week

Melchior Asian Opportunities fund

In my view the recent stock market falls across the globe have given investors with spare cash an excellent opportunity to buy into markets at a significant discount.

One region which I remain very keen on is Asia. China has already had a profound affect on the price of goods around the world. Some items, such as clothes and electronic goods, have got cheaper whereas others (e.g. steel, copper) have become far more expensive.

We have yet to feel the force of what I believe will be China’s second great influence on world markets. China has a huge trade surplus and its domestic population save huge amounts of money too.

So far this has either been held back for a rainy day or invested in domestic shares, which is why the Shanghai market has rocketed up this year. However, on June 20 the Chinese authorities announced changes to the rules governing overseas investment. This gives the Chinese greater freedom to invest overseas and I expect them to grasp the opportunity with both hands. As this wall of money hits stock markets, firstly in Hong Kong, then Asia, then the rest of the world, it should provide significant support for share prices.

One fund that has recognised this potential is Melchior Asian Opportunities. The fund manager, Henrietta Luk, describes it as a one-off opportunity. She has 19 years' experience and works out of Hong Kong, so I believe she is well positioned to take advantage of this trend as it develops.

Melchior is not a household name yet, but they are certainly turning heads in the investment industry with some impressive performance. This is currently heavily exposed to Hong Kong (28 per cent), South Korea (24 per cent) and Malaysia (22 per cent). I have invested in this fund myself and will be looking to top up in due course too.

Mark Dampier, head of research at Hargreaves Lansdown

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